Correlation Between Sangsangin Investment and Han Kook
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Han Kook at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sangsangin Investment and Han Kook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Han Kook Steel, you can compare the effects of market volatilities on Sangsangin Investment and Han Kook and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sangsangin Investment with a short position of Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Han Kook.
Diversification Opportunities for Sangsangin Investment and Han Kook
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sangsangin and Han is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Steel and Sangsangin Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sangsangin Investment Securities are associated (or correlated) with Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Han Kook go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Han Kook
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Han Kook. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 1.73 times less risky than Han Kook. The stock trades about -0.07 of its potential returns per unit of risk. The Han Kook Steel is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 316,500 in Han Kook Steel on October 28, 2024 and sell it today you would lose (136,300) from holding Han Kook Steel or give up 43.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Han Kook Steel
Performance |
| Timeline |
| Sangsangin Investment |
| Han Kook Steel |
Sangsangin Investment and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Han Kook
The main advantage of trading using opposite Sangsangin Investment and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Han Kook can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Han Kook will offset losses from the drop in Han Kook's long position.| Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. Samsung Electronics Co | Sangsangin Investment vs. SK Hynix | Sangsangin Investment vs. HMM Co |
| Han Kook vs. Ssangyong Information Communication | Han Kook vs. TS Investment Corp | Han Kook vs. Stic Investments | Han Kook vs. Samyung Trading Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |